The Falcon project concentrates on the relationship between systems engineering and component engineering with all integration and optimization aspects involved. It will investigate and deploy model-based system design and optimization methods and tools to analyze and synthesize multi-level systems. As a result layered systems can be designed, which will meet their stringent requirements and constraints on performance, reliability, cost, development time etc. Large logistic systems (distribution centers and warehouses) are complex multi-level systems. They range from the level of vast parallel flows of goods (discrete items) down to the level of each specific order composition. For the Falcon project these logistic systems are the research driver and the industrial reference frame. The goal will be the design of a new generation of automated distribution centers and warehouses, this research will be done in close cooperation with Vanderlande Industries and the Embedded Systems Institute. SET participates in a subproject that focuses on investigating how model driven engineering/architecture techniques can be used to model the (software) architecture and interfaces with sophisticated hardware components such as grippers. These models are used as input for software generators.